Defense Metals Corp. (TSXV: DEFN) is undertaking a non-brokered private placement financing for aggregate gross proceeds of C$12.5M.
As part of the Concurrent Placement, the company has received a lead order from RCF Opportunities Fund II L.P. (RCF) for approximately C$6.6M. John Robins, Strategic Advisor to the company will also participate in the Offering.
“We are very pleased to welcome RCF as a key shareholder to the company and recognize its investment as a strong validation of our project and our team,” CEO, Craig Taylor, said.
“This financing will leave us well financed to continue to advance Wicheeda and fully funded to complete our Pre-Feasibility Study and progress other initiatives. We also appreciate the continued support of our existing shareholders including John Robins of Discovery Group.”
Agentis Capital Mining Partners is acting as financial advisor to the company.
The company intends to use the net proceeds of the LIFE Offering and the Concurrent Placement to advance the company’s wholly-owned Wicheeda Rare Earth Elements Project including: (i) the completion of the ongoing pre-feasibility study work; (ii) regional exploration activities; and (iii) general working capital and corporate expenses.
The 2021 Wicheeda REE Project Preliminary Economic Assessment technical report (“PEA”) outlined a robust after-tax net present value (NPV@8%) of $517M and an 18% IRR1. This PEA contemplated an open pit mining operation with a 1.75:1 (waste:mill feed) strip ratio providing a 1.8Mtpa (“million tonnes per year”) mill throughput producing an average of 25,423t REO annually over a 16 year mine life. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and payback of $440M initial capital within five years.
For further information please visit: https://www.defensemetals.com/
